A U.S. developer facing mounting local opposition to a data center project has offered residents cash — $10,000 (about 14 million won) per household. Developers have rolled out various community support measures to defuse resistance to data centers, but direct cash payments are rare. Foreign media described the move as "an entirely new phase" in the buildout of artificial intelligence infrastructure.
Letters promising $10,000 to every household began arriving in Hazle, Pennsylvania, in June, according to The Wall Street Journal on the 27th. The letters told recipients they could spend the money on whatever they wanted.
The letters came from NorthPoint Development, a data center developer pursuing 15 data center buildings on a 1,300-acre site at the foot of the Pocono Mountains near the town. The payment is conditional on residents agreeing to construction of the first data center in the project. With 4,500 households eligible, the total payout would reach $45 million (about 61.1 billion won).
Median household income in Hazle is about $60,000, making $10,000 a meaningful sum, the Journal said. Even after taxes, it would cover six months of rent on a two-bedroom apartment, or several months of groceries and fuel.
Brent Miles, NorthPoint's chief marketing officer, said he came up with the idea at a public hearing last year. Angry residents asked what they stood to gain by supporting the data center. "As a direct answer to the question 'What's in it for me?' I think we came up with something pretty radical and pretty leading-edge," Miles told the Journal.
Separately from the cash payments, NorthPoint plans $120 million (about 162.9 billion won) in support over the next 15 years, including funding for the police department and other community investments.
So Far, the Offer Has Backfired
Some residents have shown interest in the $10,000, but most of those interviewed by the Journal said they still oppose the data center. One resident said small-town politicians are too easily swayed or overwhelmed by large developers. Another said $10,000 is nowhere near enough to offset the collapse in home values the data center would bring. A third said the offer could backfire.
Others have raised suspicions that the local government and the developer are withholding important information from the public. Pennsylvania Governor Josh Shapiro signed an executive order last month banning non-disclosure agreements between local governments and data center companies.
Hazle Township is also blocking the project. In November, the township declined to approve it, citing zoning rules. NorthPoint has sued the township, and the legal fight is ongoing.
Data center developers are increasingly offering support packages worth tens of millions of dollars to small towns and local governments, including funding for fire departments, emergency services and schools. Opposition remains strong. The industry is watching whether the new cash-payment tactic can quiet data center opponents, and whether other developers will follow.
